Arguments in Favour of Active Economic Policy Include All of the Following

Multiple Choice

Arguments in favour of active economic policy include all of the following except:

A) failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment.
B) policymakers can make precise forecasts about the economy and the effects of their policies.
C) fluctuations in real GDP have been less severe following World War II than prior to World War I.
D) failure of policymakers to respond to large contractionary shocks to private spending caused the Great Depression.